These 3 Altcoins Are In The Critical Zone, What Will Their Next Moves Be?

According to crypto analyst Valdrin Tahiri, this altcoin price action points to a bullish prediction. Analyst Ibrahim Ajibade says ADA will give another buying opportunity in the coming days. Also, according to the analyst, the Shiba Inu is at risk if it fails to exceed the critical level.

Key level for MATIC: A decisive factor for the trend

The weekly timeframe technical analysis for MATIC gives a bearish outlook for many reasons. The bearish signs started after the price broke out of the long-term ascending parallel channel. This marked the completion of the previous uptrend and the start of a new downtrend. Then, the rate of decline accelerated in early June. Thus, it caused a breakout from the $0.75 support area. As a result, it pushed the altcoin price to the horizontal support level of $0.53. altcoin price is currently trading between these two levels.

The weekly Relative Strength Index (RSI) is also bearish, supporting the continuation of the decline. The RSI is below 50 (red icon) and falling. This indicates a downward trend. The indicator legitimized the breakdown by falling below 50 at the same time that MATIC price broke out of the channel.

The short-term six-hour time frame shows that the altcoin price has made several higher lows. It is possible that these are the first signs of a bullish pattern. However, price action also shows bearish signs, i.e. the existence of an ascending parallel channel. Although MATIC price is currently trading at the top of the channel, the resistance line of the channel is coinciding with the 0.5 Fib retracement level of $0.74. The entire move is likely to be just a relief rally in response to the previous drop. If this is the case, MATIC price will likely rally to a maximum of $0.75 before falling to the long-term $0.53 support.

Despite this bearish MATIC price prediction, exiting the channel will mean that the trend is still up. The $0.75 resistance is both the Fib and long-term horizontal resistance area. Therefore, clearing it would confirm a reversal of the uptrend.

Is this a buying opportunity for the altcoin?

On-chain data shows Cardano’s Weighted Sentiment plunged to an all-time low of -3.01 on June 9 following the SEC lawsuit against Coinbase. As of July 3, ADA Weighted Sentiment is currently at -1.11. While the outlook is still largely hawkish, there is a 63% improvement compared to the all-time low recorded on 9 June.

The chart above shows that the optimism surrounding ADA has continued to rise over the past few weeks.

After weeks in a downtrend, it looks like the bulls have now taken control of the market momentum. Albeit by a small margin, the exchanges’ aggregate order books show that the bulls are currently placing more buy orders than the market supply. Currently, the bulls have placed orders to buy 57.7 million ADA. Meanwhile, trades have only put up for sale 57.1 million ADA.

As seen above, the momentum between buy and sell orders is still in the balance. Currently, demand outstrips supply by only a small margin of 600,000 ADA.

Cardano on-chain has given some bullish signals. However, it is still too early for the bulls to set high targets to reclaim $0.40. This is because Cardano will likely face a significant push back around $0.32. In this region, 421,170 investors who bought 3.44 billion ADA at an average price of $0.32 could make some profit. However, if the bulls push this resistance aside, it is possible for ADA to retake $0.35.

Still, there is a chance for the bears to force another drop if ADA drops to $0.25 again. However, 96,480 investors who bought 3.1 billion Cardano at a minimum of $0.27 are likely to hold back the decline. However, if the support ends, ADA price is likely to decline towards $0.25.

Is the Shiba Inu at risk?

One of the key indicators of a potential price correction is the perceived drop in confidence among Shiba Inu long-term owners. Between June 17 and July 3, the altcoin price gained 15%. But more importantly, the Average Coin Age has decreased by 35% during this period, according to Santiment data.

The chart above shows long-term traders booking profits when the price drops during a rally. If they continue to exit their positions, the price of SHIB will likely fall further in the coming days.

Cryptokoin.com’As you can follow from SHIB, it has recorded 15% price increases in the last two weeks. This means that SHIB appears to be overvalued. It is noteworthy that the Network Value/Transaction Volume (NVT) ratio has been on the rise since mid-June. SHIB witnessed a 385% increase in NVT rate from June 22 to July 3.

The NVT ratio evaluates the underlying economic activity in a Blockchain network based on the token price. When this rate rises, it indicates that the token is overvalued and may be at risk of some pullback. If this historical trading pattern holds, SHIB bears could take control in the coming days.

According to IntoTheBlock’s Global Money In/Out Price breakdown data, the Shiba Inu is likely to drop towards $0.000006. Currently, however, the 53,800 investors who have purchased a total of 21.05 trillion SHIB tokens at a minimum price of $0.000007 will likely offer some support. If this critical support level folds as expected, the altcoin price could pull back towards $0.000006.

Still, Shiba Inu bulls can overcome the bearish rhetoric if the altcoin price rises above $0.0000085. But as seen above, some of the 14,950 addresses that bought 31.32 trillion SHIB at a minimum of $0.000008 could trigger a pullback. However, if the bulls push this resistance aside, the altcoin could head towards 0.000014.

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